In Eerie Replay Of 2011, Gold Spikes Abruptly To Over $1770, Silver Follows

Tyler Durden's picture

Day after day, the long overdue correction of gold to fair value which as we have discussed previously, is now at about $2000 based on the recent multi-trillion Central Bank balance sheet expansion, keeps getting delayed, providing cheap entry points to all real money adherents. And then we get moments like the past 10 minutes, when gold goes on the same kinds of buying sprees that we remember best from the summer of 2011. With no news at all, in a span of minutes, both gold and silver have soared, with gold touching on $1772, and now about $150 away from its all time highs. The return of gold now is 13% YTD, compared to the far lower 8.4% return for the general market. Why the move? A big buyer obviously. But besides that, why the hell not - when one considers that the last time gold was over $1900, total central bank assets were $2 trillion less, it is a miracle gold is not far, far higher. The catalyst this time according to some is the "sudden realization" that in one week the ECB's balance sheet is about to increase by at least 20% courtesy of the latest and greatest LTRO. According to others, it is "more buyers than sellers." Both are right. As a reminder: we have warned repeatedly that the massive balance sheet expansion is spilling over out from equities and into everything else, including gas and now, gold. We pointed out that the biggest trade off of a soaring market could well be the one thing that derails Obama's presidential campaign. Now the only other thing that could stop central bankers from their CTRL+P frenzy - the surge in real money - is starting, and unlike 2011, it is starting quite early this time around. As we said over the weekend: inflation is a-coming back.

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bugs_'s picture

War indicator, not ongoing inflation indicator.

ilion's picture

Gold will be at 1800 by the beginning of next week. I won't tell you how I know this because you gonna bust my balls again.

midtowng's picture

My gold and silver still look the same as when I bought them at $300 an ounce and $5 an ounce. They weigh the same. They shine the same. They are hated by central bankers and Wall Street the same.

trav7777's picture

if CBs hate gold so much, why do they hold so many tons of it?

GetZeeGold's picture



Traditionally leased out.....good luck getting it back.




bdc63's picture

went outside to feed the chickens and gold was trading down about 2 bucks ... came in 5 minutes later and it was up $10.  nice to know that I'm not the only one that noticed.

trading up about $22 bucks now to $1780, and it looks like it is still moving going into the 2:30 commodities close ... and of course the bozos on CNBC haven't mentioned a single thing about it (too busy talking about Lumber Liquidators and Cheesecake Factory ... what the ...).

engineertheeconomy's picture

what the fuck? (finished it for you)

TruthInSunshine's picture

Why junk trav for asking a rhetorical question that made The Bernank look like a fool when asked the same by Ron Paul?

trav7777's picture

i'm seein yen and GBP devaluation potential as well could be driving this.  Meanwhile the BRL is goin up up

Mr Lennon Hendrix's picture

Not sure why anyone would junk this comment.  Yuan strength/dollar and euro flat/GBP and Yen weakness threw a wrench in the PM market.  It's an FX trade reversal, and when trades reverse, people change their methods.  Today and yesterdays methods was buying gold.

Silversinner's picture

Wish the Dutch(my country) would have kept

our gold.We had 1900 tons at 1991,now

we only have about 800 tons left;sold

1100 tons at ridiculous low prices.Same goes

for England and the Swiss.

Transformer's picture

And who do you think bought all that cheap stuff?

AC_Doctor's picture

trav777 "if CBs hate gold so much, why do they hold so many tons of it?"

Do you mean the huge amounts of gold bullion that has been rehypothecated over and over 200 plus times.  Drop in the bucket bitch for what they have to cover their shorts with!

MarcusLCrassus's picture

Because its such a barbaric relic that they like to keep it around to remind them of the time when people were just roving barbarians hunting woooly mammoths. 

Ancona's picture

Thank you for noticing that I am a Barbarian. I like it!

Real money bitchez. It's what's in my wallet!

tocointhephrase's picture

Jon Nadler is a kunt is a kunt is a kunt, jon nadler is a kunt dont buy at kitko! Hug your dealer lar lar lar lar lar lar lar lar lar hug your dealer lar lar lar Occupy Wall Street!

tocointhephrase's picture

----1764 now a bottom?

-----Gold iz in a burble? 

engineertheeconomy's picture

Agree with Tocointhephrase, Kitco is %100 MANIPULATED

Milton William Cooper's picture

Cb's don't hate gold, they hate people other than them owning it

MarcusLCrassus's picture

Ding ding ding, we have a winner.


CBs are in the tough position of trying to accumulate as much gold as they can, while at the same time making the population think that accumulating gold is stupid and something to be hated.   They're trying to do that without looking stupid, and that's hard to do. 

tmosley's picture

Probably the same reason you own silver while trashing it at every opportunity.

trav7777's picture

I don't trash silver, it's an inanimate object.  I trash YOU and idiots like you for shamelessly pumping an industrial metal and trying to stampede gullible lemmings into becoming bagholding dupes.

tmosley's picture

Those "bagholding dupes" who are all in the money?


trav7777's picture

you do know that we were all here during the bubble runup and we ALL saw you breathlessly cheerlead silver like a NAR economist, right?

You can't pretend away the truth, cliff.  It really WAS you who said "$60 by next week," "hyperinflation IMMINENT," and "$49 by the end of this week," all while silver totally cratered and got a lot of people's life's savings totally blowtorched.

All those people are "in the money," eh?  Just like "housing is a can't miss investment that never goes down."  I'm going to start calling you Cliff mosely-Yun-Lareah-claven.  You have more names than a fuckin south american

tmosley's picture

You can make up shit all you want, but the fact is that people who followed my advice have made money.

Repeat that lie enough, and maybe people will beleive you, wanna-be Hitler.

Also, so nice of you to lay out your lies for me.  The first quote is out of the context of even the sentance, which said "At this rate, silver will be $60 by next week", which is quite clearly an observation, not a fucking prediction.

Hyperinflation IS imminent, you idiot.  Are you seriously saying we aren't going to have any?

And how exactly is the FACT that people who cost averaged are LITERALLY AT WORST down less than $2 from their cost average anything like"housingis a can't miss investment that never goes down"?  I have said repeatedly, and BEFORE that rise that we were going to go into a period of extreme volatility with a trend toward ZERO as the exchange falls apart, which is EXACTLY what has happened with the MF Global fiasco.

But you still have a personality disorder, so you will never recognize anything that goes against whatever is already in your little head.

Crumbles's picture

Now, now, Mr Mostly -

you just invoked Godwin's Law; "As an online discussion grows longer, the probability of a comparison involving Nazis or Hitler approaches 1"

And the rest of your argument is completely ignored after the ref. to Herr Fuckface.

You know who I mean ...


tmosley's picture

No, I didn't.  Godwin's Law does not apply when talking about people who espouse eugenics, like Trav.

Trav tried to claim that before while in the same breath talking about extermination of 97% of the world's population and how we must all give up our freedoms to survive.

DosZap's picture

Hyperinflation IS imminent, you idiot.

THIS is a FACT........................................this is why you should not give a whale turd where you buy PM's in fiat.

The only way you will survive is with phys ownership in this event.

JLee2027's picture

And we trash you for not recognizing that Silver has been money since the dawn of civilization. It has only become an industrial metal in recent history. But you put industry usage first and not money.

I'll bet you personally will be using silver as money within the next 2 years.  Or you'll be the last ass at the gas station trying to use fiat when gas is 3 billion per gallon.

Bay of Pigs's picture

Trav, when silver finally breaks free from JPM and the other cartel criminals you will look like the biggest douchebag to ever post here at ZH.

Please get your head out of your ass. It's pathetic.

trav7777's picture

oh it's really gonna take silver to "break free" from JPM's evil clutches for that?  Where have you been for like since I signed up for ZH?

Chump's picture

Now that's funny, I don't care who you are.

Troll Magnet's picture

now, now, bitches...smoke some weed and chill out!  it's one of them good days for us PM owners (myself excluded, of course, because i swear to your god i don't own any).


Chump's picture

Now that's good advice, I don't care who you are.

Bay of Pigs's picture

Your arguments hold no water when it comes to silver.

Now go get your fucking shinebox...

tmosley's picture

Hmm, two years, six weeks.  Silver was $18.60, and I was telling people to buy it, via cost averaging.

And you still had a family and a job, lol.

trav7777's picture

yeah and a few months ago you were telling people to BUYBUYBUY and then it crashed.

And you were still a loser.

EHM's picture

Industrial metal? Since when 1963? Oh but we have evolved as a human race and no longer need to follow basic principle right?

Alpha Monkey's picture

If a majority of people migrated to gold for wealth preservation, it would seriously hamper their business model of stealth theft and control.  They hold it because they know their game is rigged and some day, as has happened in the past many times, there will be a return to real money.

So, they do hate it, but they also know it's value. 

CompassionateFascist's picture

The "hate" is PR, to keep real people from buying and running up the price. The "love" is Rothschild in the vault, caressing his gold.

Long-John-Silver's picture

They hold tons of paper Gold, not physical Gold.

A Nanny Moose's picture

Maybe they just want you to think they hate it so you won't buy any.

ilion's picture

Maybe it shines only on the outside? Are you sure you didn't buy it from Fed?

BLOTTO's picture


Reagrding the 'they are hated'...

I think deep down inside they love it - Gold & Silver - but hate for US good folks to know about it.

Whoever owns Gold - rules the world.

Its not old - its ancient.